International Business Strategies Report - EUL - Analysis & Strategies

This report provides an analysis of the international business failures of Taco Bell in Dubai, Dunkin Donuts in India, and Tesco in the USA. It examines the reasons behind their struggles, including a lack of market research, failure to adapt to local preferences, and ineffective strategies. The report evaluates potential strategies for business revival, such as localization, transnational strategies, and global standardization, offering insights into how these companies could have improved their performance and market share. The analysis covers the importance of understanding cultural differences, adapting to consumer preferences, and implementing effective marketing and pricing strategies for success in international markets. The report draws on various sources to support its findings and provides recommendations for future international business ventures.

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Table of Contents
Analysis of Collapse of the Company Taco Bell in Market of Dubai.............................................2
Evaluation of Different Strategies for Reviving Business...............................................................2
Analysis of Collapse of the Company Donkin Donuts in Market of India.....................................3
Evaluation of Different Strategies for Reviving Business...............................................................3
Analysis of Collapse of the Company Tesco in market of USA.....................................................4
Evaluation of Different Strategies for Reviving Business...............................................................4
References........................................................................................................................................6

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Analysis of Collapse of the Company Taco Bell in Market of Dubai
Taco Bell has a huge presence in the market of the United States of America wherein the
Mexican style fast food chain has nearly 6500 stores in the USA; however, the company has had
trouble taking off abroad especially in the United Arab Emirates market. The reason for the
failure of the company was due to the owners wherein they did not have any knowledge
regarding the preferences of the customers in the market and it impacted their growth drastically
in a negative manner. The deficient of proper customization as per the tastes and preferences of
various kinds of customers along with loopholes in the market related research of the Dubai
market are the two major aspects which were overlooked by the owners and it created lack of
profitability and revenue growth (CNBC.com, 2020).
Evaluation of Different Strategies for Reviving Business
As commented by Steenkamp (2017), the ability for expansion of the business of Taco
Bell is highly essential in the globalized world of today. In case of company, to expand and
maintain their presence in the UAE market, the Localization could have been the most effective
strategy that is the key for the global growth. Localization allows the more of the customers to
learn regarding the products as well as services and it helps in increasing the customer base in a
proper manner (Taddei & Patera, 2018). As there have been substantial differences across the
nations with regards to the tastes and preferences of the different customers, in such scenario, the
localization could have improved the market share of the company Taco Bell in market of Dubai.
In the market of Dubai, the customers mostly prefer the dishes which are non-vegetarian in
contrast to the different American countries and in such scenario, the same could have been
taken care by the application of the Localization Strategy in a suitable manner. Through the

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localization concept, Taco Bell could have introduced food items which were liked by the
customers in Dubai and it would have helped them in managing their business in a positive and
successful manner.
Analysis of Collapse of the Company Donkin Donuts in Market of India
In case of Donkin Donuts, the main problem which was being observed was the fact that
the different Indian customers did not prefer any sweet breakfast in their morning diet due to
which it affected the efficiency of the company negatively. The company initially launched as
the AM brand which offered the breakfast menu to the different customers. In the initial phase,
Donkin Donuts failed drastically for understanding preferences of the different customers in
market of India for fast food restaurant that offered full meals rather than light doughnuts for the
breakfast menu(Medium.com, 2020). There was poor response from the different customers and
in such scenario, the company tried to become the PM brand which offered much more than
coffee and doughnuts.
Evaluation of Different Strategies for Reviving Business
With the help of the Transnational Strategy, wherein the brand tried to customize the
menu in a quick manner in India wherein they included burgers like the competitor McDonald’s
for attracting the large number of customers. As per the Transnational Strategy, it will be
offering the different kinds of coffees along with sandwiches with the Indian centric menu
through customizing the Indian taste. In addition, the pricing strategy was made highly effective
for suiting the preferences of the different customers in market of India (Jeong, Kim & Seo,
2018). The penetration pricing strategy along with Transnational Strategy was being adopted by
Donkin Doughnuts for improving their effectiveness in managing their business and growth

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suitably and increase their market share and presence in a suitable manner within the stipulated
time frame as well (Mason, 2019). The penetration strategy of pricing will therefore allow
Donkin Donuts to attract the large number of Indian customers towards the respective branxd
and quickly gain the strong share in the market of India successfully.
Analysis of Collapse of the Company Tesco in market of USA
From the analysis of the different news and surveys, it has been found that Tesco failed in
a terrible manner in the market of The United States of America due to the assailed by the
various competitors, Tesco lost their plot with the poorly stocked market. The main or the core
issue was related to the misinterpretation of the data they had collected. There are wide cultural
differences in the UK and USA culture and it was seen that the advertising which was done were
meaningless in nature and the absence of the new ideas were the different other aspects that
impacted the popularity of the company in the market of USA (Medium.com, 2020). In the
market of the USA, the different people preferred the large supermarket wherein they can shop
on their own and receive the effectiveness in the different services which are delivered by them.
However, the mini market concept adopted by Tesco was not up to the mark and it created high
pressure on the company negatively and it impacted their growth and led to closure in USA
market as well.
Evaluation of Different Strategies for Reviving Business
In case of Tesco, the company owners should have followed the Global Kind of
Standardization Strategy wherein they could have used the standard marketing concept in the
international market. In other words, it is capable of generating the proper ability of the company
to use the same kind of marketing strategy from one country to the next. In case of Tesco, the

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officials and the CEO of the company could have introduced same supermarket concept in USA
which could have assisted in improving their growth and it could have helped them in gaining
strong market share in comparison to the other competitor companies which are present in the
market of USA (Steenkamp, 2017).
Through the usage of the respective strategy, it could have helped Tesco in promoting
their strong brand image in the international scenario and it is considered to be the time tested
process which could have been beneficial in boosting their productivity in the market
successfully. The negotiation process lowers prices from suppliers as they would be opening the
chain of the stores in the market to improve their performance effectively and gain
competitiveness in the market (Taddei & Patera, 2018). However, there could have been
reduction in flexibility approach which could have been helpful in managing their business in the
different international markets in a successful manner and it could have helped in improving the
quality of the offerings which are provided by them successfully. The guarantee for the quality is
present that helps them in increasing the morale of the employees working in the company to
make them feel that they are valuable asset of the company. It will be highly beneficial for
improving their performance and gain high level of customer base and market in the respective
market.

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References
Chung, S., Jeon, J. Y., & Hwang, J. J. (2016). Standardization Strategy of Smart Factory for
Improving SME's Global Competitiveness. Journal of Korea technology innovation
society, 19(3), 545-571.
CNBC.com (2020) Taco Bell failed in Dubai (Online) Retrieved from
https://www.cnbc.com/2019/02/01/taco-bell-yum-brands-dubai-uae-fast-food.html
[Accessed on 14th April 2020]
Jeong, I., Kim, E., & Seo, E. (2018). An empirical study of the relationship between marketing
standardization and performance of Japanese firms in international markets: the
moderating role of product strategy. International Journal of Marketing &
Distribution, 2(1), 15-24.
Mason, C. (2019). Opposing Abortion to Protect Women: Transnational Strategy since the
1990s. Signs: Journal of Women in Culture and Society, 44(3), 665-692.
Medium.com (2020) Dunkin Donuts is failing in India (online) Retrieved from
https://medium.com/shack-media/dunkin-donuts-is-failing-in-india-1f2f7c45b9f
[Accessed on 14th April 2020]
Medium.com (2020) The failure of Tesco in USA (online) Retrieved from
https://medium.com/swlh/the-failure-of-tesco-in-the-usa-d2823842ffbb [Accessed on
14th April 2020]

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Steenkamp, J. B. (2017). Global Marketing Mix Decisions: Global Integration, Not
Standardization. In Global Brand Strategy (pp. 75-109). Palgrave Macmillan, London.
Taddei, T., & Patera, A. T. (2018). A localization strategy for data assimilation; application to
state estimation and parameter estimation. SIAM Journal on Scientific Computing, 40(2),
B611-B636.